I Don't Buy Crypto Until I Ask These 5 Questions
I've made this mistake before.
You see a coin up 50%… then 100%… and suddenly everyone's talking about it.
Your first thought is:
“Damn, I should've bought this earlier.”
And that's exactly when things can go wrong.
These days, before I put money into a crypto project, I ask myself five simple questions.
1. What Does It Actually Do?
Some projects have amazing websites and big promises.
But then you ask:
“Okay… what does this actually do?”
And suddenly the explanation gets really complicated.
If I can't understand the project after doing some basic research, I usually step back.
It doesn't mean it's bad.
I just don't understand it well enough to put my money into it.
2. Why Does It Need a Token?
This is easy to overlook.
A project can be interesting without its token necessarily being a good investment.
So I ask:
Why does this token exist?
Does it have a real purpose?
Is there a reason people actually need it?
Or was a token added simply because… well, it's crypto?
That's a big difference.
3. Who Holds Most of the Supply?
This one can change my whole view of a project.
If a small number of wallets hold a huge amount of the supply, I want to know who they are.
That doesn't automatically mean something is wrong.
But if a few wallets could dump a massive amount of tokens, I definitely want to know about it before buying.
A nice chart won't tell you that.
4. Is Anyone Actually Using It?
This is where I try to ignore the hype.
A project can have hundreds of thousands of followers.
That doesn't mean hundreds of thousands of people are using it.
And a Telegram group full of “LFG 🚀” doesn't tell me much either. 😂
I'd rather see actual activity.
Are people using the product?
Is development happening?
Is there something going on beyond social media hype?
5. What If It Drops 30%?
This might be my favorite question.
If I buy something and it drops 30%, do I still know why I bought it?
Or am I sitting there thinking:
“Why the hell did I buy this?” 😂
If I understand my reason for buying, a red chart doesn't automatically make me panic.
It doesn't mean I'll hold forever.
It just means I didn't buy it blindly.
My Quick Check
Before buying a new crypto, I want to know:
What does it do?
Why does it need a token?
Who holds the supply?
Are people actually using it?
Would I still understand my investment after a 30% drop?
If I can't answer these, I'm not in a hurry.
There will always be another coin.
That's one thing crypto teaches you pretty quickly.
One Thing I Learned
Don't let a green candle make your decision for you.
When something is pumping, it's easy to convince yourself:
“I need to get in NOW.”
Sometimes you do.
Sometimes you're just chasing.
I'd rather miss a pump than buy something I don't understand.
I don't need to catch every 100x.
I just want to make better decisions with the money I actually have.
If You Use Binance
If you trade on Binance and want to sign up through my referral link, you can use it here:
https://www.binance.com/register?ref=IDOGGFIL
Disclosure: This is my referral link, so I may receive a commission if you sign up and qualify through it. You don't need to use my link to follow anything in this article.
Crypto is risky. Do your own research and never put in more than you're comfortable losing.
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